Global banking regulators will change the rules for overseeing the crypto market

With the growing popularity of cryptocurrencies and digital assets, global banking regulators have begun to reconsider their approaches to regulating this rapidly developing industry. The Basel Committee on Banking Supervision, responsible for setting international standards for banks, has initiated a review of its cryptocurrency regulatory framework following criticism from several global regulators.

Change in Risk Weighting

The previously established risk weighting of 1250%, which equated cryptocurrencies with the most risky assets, proved to be too strict. This approach has made working with digital assets unprofitable for banking organizations, thereby distorting competitive conditions between countries. Regulators such as the US Federal Reserve (Fed) point out that the current regulatory model fails to take into account the true risk profile of various types of cryptoassets.

In the UK, meanwhile, there are no plans to implement the Basel standards in their original form. The European Union has chosen a selective implementation process, starting in 2022, as some provisions have been deemed redundant and inconsistent with current realities.

Stablecoins and their impact on the market

One of the most discussed topics in the context of cryptocurrency regulation is stablecoins. In recent years, the number of active users of this instrument has grown significantly, and stablecoins have quickly become an important tool for digital payments. The growth in transaction volumes has demonstrated that old regulatory approaches are inconsistent with current technological advances.

The Basel Committee itself is still divided on the regulation of stablecoins. Some representatives insist on the need for strict measures to protect financial stability, while others believe such measures could hinder innovation in the banking sector.

The Case of Liechtenstein

Amid global changes, Liechtenstein has completed the implementation of the European MiCA (Markets in Crypto-Assets) regulation, despite not being an EU member. One of the first licensed participants was Ondo Global Markets, which received permission to issue tokenized shares in Europe.

The local regulator, the FMA (Financial Market Liechtenstein), has required all crypto service providers to obtain a MiCA license by the end of 2025. This should enhance legal certainty and increase consumer confidence in tokenized financial instruments.

In Conclusion

Thus, global banking regulators recognize the need to adapt their approaches to cryptocurrency regulation in a rapidly changing market. The revision of the risk assessment and the focus on stablecoins demonstrate that regulators are seeking to find a balance between protecting financial stability and supporting innovation. It is important that the new regulations promote the development of the crypto industry while ensuring the security and trust of users.